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book The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin cover

The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin

Edition 4ISBN: 978-0133859997
book The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin cover

The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin

Edition 4ISBN: 978-0133859997
Exercise 25
Unless otherwise noted, the following assumptions are made in all questions: The required reserve ratio on checkable deposits iS₁0%, banks do not hold any excess reserves, and the public's holdings of currency do not change.
Classify each of these transactions as an asset, a liability, or neither for each of the "players" in the money supply process-the Federal Reserve, banks, and depositors.
a. You get a $10,000 loan from the bank to buy an automobile.
b. You deposit $400 into your checking account at the local bank.
c. The Fed provides an emergency loan to a bank for $1,000,000.
d. A bank borrows $500,000 in overnight loans from another bank.
e. You use your debit card to purchase a meal at a restaurant for $100.
Explanation
Verified
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a. Getting a $10,000 loan from the bank ...

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The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin
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